Increasing Surgery Migration Puts Pressure on Hospitals to Develop an ASC Plan

Hospitals are in an increasingly precarious situation. The drumbeat of changing healthcare policy, along with patients’ desire to be in a COVID-19-free environment and to limit their time in healthcare facilities, is generating even more pressure on hospital leaders to consider aligning and partnering with ambulatory surgery centers (ASCs).

Surgery generates a tremendous amount of revenue but is also one of the most expensive services provided by hospitals. Directing surgery out of hospital settings to ASCs presents significant cost-saving opportunities for CMS and commercial payers while posing a direct threat to hospitals’ bottom line. Hospitals and health systems without a cogent plan related to outpatient surgery may soon be faced with empty ORs, departing surgeons, and staffing reductions.

However, rewarding providers for delivering cost-effective care at lower-cost sites of service can create opportunities for hospitals that are proactive to the demands of the current environment. Hospitals that understand their exposure to surgical migration can develop a plan to offset and/or minimize the risk and position themselves for long-term success.